A large number of people in India invest in some securities such as shares such as equity shares and demat shares. Investing in these tools not only give them a higher ROI but even an opportunity to borrow a higher amount at a lower rate.
One of the best ways of raising capital is by opting for what is known as a loan against equity shares. The benefits here are that you get a high-value loan at a low-interest rate. You can use the loan amount for meeting any kind of personal emergencies you have without the need to liquidate the equity shares.
Some of the top aspects of this loan are as follows -
Even though the maximum loan amount being offered will vary from lender to the other, as it is a secured loan, it is safe to conclude that the loan amount so offered will be high. As there is no restriction whatsoever on its usage, you can use the loan amount for meeting a wide range of your personal needs.
This is one of the single biggest consideration when opting for any kind of loan. As a loan against equity shares is a secured one, the interest rate decreases substantially. This means that the monthly instalments are less and repaying back the loan does not become a burden.
Many people tend to overlook this aspect but the tenor of repayment is equally important. This is because for a given interest rate, if the tenor is a big one, then the instalment will be less and vice-versa. As a loan against equity shares is a secured one, the repayment tenor is longer than the unsecured loans. Thus, the instalments are lower and so it does not have an impact on your monthly finances.